Low-Beta ETFs to Fend Off Market Volatility
Zacks Investment Research | Dec 02, 2021 11:10PM ET
U.S. stocks have been caught in a wild swing of trading lately driven by a combination of factors like the resurgence in COVID-19 infections, inflation fears, and Fed’s taper talks.
Investors may want to remain invested in the equity world but at the same time seek protection from a downside. This could be easily achieved by investing in low-beta products like Invesco S&P 500 Downside Hedged ETF Low-Volatility ETFs in Focus on Virus & Fed Taper Worries ).
JPMorgan Equity Premium Income ETF has AUM of $4.9 billion and charges 35 bps in annual fees. The product trades in an average daily volume of 891,000 shares.
Bottom Line
Investors should note that these products are not meant for generating outsized returns. Instead, these provide stability to the portfolio, protecting the initial investment. In particular, these products could be worthwhile for low risk-tolerant investors looking to safeguard their portfolio in the current market environment and seeking outperformance.
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